First Active PLC -v- Cunningham [2018] IESC 11 (22 February 2018)

First Active PLC -v- Cunningham [2018] IESC 11 (22 February 2018)

The Supreme Court held that section 41 of the Central Bank Act 1971 effected an automatic substitution of Ulster Bank for First Active in the proceedings upon transfer of business, requiring no court application; that the failure to notify the court or formally amend the record did not render the proceedings or judgment void, and any necessary amendment could be made by the Supreme Court. Courts Act interest was properly awarded as the guarantee did not provide for interest as of right, and the trial judge's exercise of discretion was not unreasonable. The appellant suffered no prejudice from the refusal of an adjournment or from the substitution issue. The appeal was dismissed.

Citation
[2018] IESC 11
Parties
Plaintiff/respondent: First Active PLC; Defendant/appellant: Brian Cunningham
Jurisdiction
Ireland
Judgment Date
22 February 2018
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Guarantee Enforcement, Statutory Transfer of Banking Business, Courts Act Interest, Res Judicata, Party Substitution in Litigation
Banking Law Contract Law Civil Procedure Guarantee Enforcement Statutory Transfer of Banking Business Courts Act Interest Res Judicata Party Substitution in Litigation

Case Brief

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Parties

First Active PLC

Plaintiff/respondent

Brian Cunningham

Defendant/appellant

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the statutory transfer of First Active's business to Ulster Bank required formal substitution of parties in litigation
  2. 2 Whether Courts Act interest was properly awarded on the judgment against the guarantor
  3. 3 Whether res judicata or issue estoppel precluded the appellant from raising issues previously non-suited

Ratio Decidendi

The Supreme Court held that section 41 of the Central Bank Act 1971 effected an automatic substitution of Ulster Bank for First Active in the proceedings upon transfer of business, requiring no court application; that the failure to notify the court or formally amend the record did not render the proceedings or judgment void, and any necessary amendment could be made by the Supreme Court. Courts Act interest was properly awarded as the guarantee did not provide for interest as of right, and the trial judge's exercise of discretion was not unreasonable. The appellant suffered no prejudice from the refusal of an adjournment or from the substitution issue. The appeal was dismissed.

Court Disposition

Appeal dismissed

Orders

  • Substitution of Ulster Bank Ireland Limited for First Active PLC as plaintiff/respondent in the proceedings
  • Judgment and orders of the High Court affirmed